HYDERABAD: In a major fillip to the electronics manufacturing sector in Telangana, Tata Group is looking into the possibility of establishing a semiconductor assembly unit in the State. Telangana is among the three southern States being considered by Tata Group, one of the biggest conglomerates, to set up an outsourced semiconductor assembly and test (OSAT) plant, the others being Tamil Nadu and Karnataka.
The group is already in talks with the three States to set up the plant with an investment of $300 million. An OSAT plant packages, assembles and tests foundry-made silicon wafers, turning them into finished semiconductors chips, which will be of significant use for Tata Motors. Sources said that the facility, which is likely to become functional in 2022, will create 4,000 jobs.
Speaking to Express, Principal Secretary to Industries, Information Technology and Electronics, Jayesh Ranjan said that the government is very much aware of the Tata Group’s plan and is waiting for it to happen. “They are yet to finalise our State. But we are ready to extend all the required support. We are yet to get further details and are awaiting the response from Tata Group,” he said.
The company is said to be scouting potential locations for entering into the semiconductor business and have their own units. The move by Tatas, which comes after the shortage of chips and semiconductors particularly for the automobile industry, will boost ‘Make in India’ initiative in the field of electronic manufacturing. It encourages companies to develop, manufacture and assemble products made in India.
Semiconductors play a crucial role in new-age automobiles in the functions like safety, communication and connectivity. Semiconductors are employed in the manufacture of electronic devices like diodes, transistors and integrated circuits. The use of semiconductors will increase further when there is a rise in electric and hybrid vehicles on the roads.